2023 New Zealand Regional Figures Report - Otago

The commercial real estate market in Otago, New Zealand, has continued to grow post-Covid with office rents in Dunedin CBD showing strong demand. However, the report anticipates a rise in vacancy levels due to new building openings, which may soften the market. The industrial market has also performed well, but inflationary pressures and high borrowing costs have slowed expansion. In the retail sector, vacancy levels and rental values have remained steady, with large format and trade display retail showing good rental growth. The report includes data on net yields, occupier and investor market directions, and supply and demand trends in Dunedin and Oamaru.